Intellectual Property Rights: Panama's and Global Perspective
Rebeca Muñoz
rebecamunoz@pacifica.legal
Lawyer, LLM
Intellectual Property Law aims to protect creations of the human mind. It is divided into two main branches:
Copyright Law
Industrial Property Law
Industrial Property protects creations with commercial or industrial application, such as inventions, industrial designs, trademarks, and others. In Panama, this area is regulated by Law No. 35 of May 10, 1996, which focuses on protecting inventions, utility models, industrial designs, trade secrets, distinctiveness of commercial and industrial secrets, trademarks for products and services, collective trademarks, guarantee marks, and trade names, among others.
The General Directorate of Industrial Property Registry (DIGERPI), under the Ministry of Commerce and Industries, is responsible for registration and consultations regarding the validity of rights over industrial property.
Inventions
Inventions are creations meant to solve a specific technical problem. Not every idea or creation qualifies as an invention; it must be capable of practical application as a product or process and be innovative.
Under Panamanian law, the owner of exclusive rights over an invention, once patented, is the natural or legal person who created it. Their name appears on the patent. Patents grant exclusivity to commercially exploit the invention, enabling economic benefits, for a period of 20 years from the date of registration in Panama with DIGERPI, without possibility of extension.
Requirements for a patent:
The invention must be new, innovative, and capable of industrial application.
It must not have been previously disclosed or used, meaning it must be novel relative to existing technical background.
The invention must be practically applicable.
Patent Application Process
The patent application must be submitted to DIGERPI through a lawyer, following Law No. 35. Individuals or entities can file applications. If not filed by the inventor, proof of rights transfer must be provided.
The application must include:
A detailed description explaining the invention’s nature, technical field, and usage.
Claims that define the scope of the inventor’s rights over the invention.
Only one patent per invention can be granted.
International application processes are also available and are filed with DIGERPI in Spanish.
Licensing and Rights Assignment
The patent owner can grant usage licenses or transfer rights. Both must be registered with DIGERPI to be effective legally.
According to law:
Granting a license does not prevent the owner from issuing additional licenses or assigning rights, unless an exclusivity agreement exists.
Licenses are not perpetual; they end by mutual agreement, cancellation, or as specified in the contract (Art. 59).
Commercial Names and Trademarks
Commercial Name: a set of words or initials that identify and differentiate a merchant’s products or services; protected without registration with DIGERPI.
Trademark: The right to register a trademark is obtained through use; however, the exclusive right is protected through registration. In case of dispute, the party that proves prior use may obtain registration.
Licensing, Franchise Agreements, and Rights Transfers
Through a contract, a trademark owner can license use to third parties for some or all of the products or services it covers.
To do so:
The registration application must have been filed and pending.
The license is registered with DIGERPI and is declarative.
A licensing agreement may be considered a franchise when it includes the transfer of know-how and instructions for maintaining consistency in the products or services associated with the mark.
In such cases, the franchisor authorizes the use of the mark and supplies the necessary knowledge to ensure compliance with quality standards.